Data center developer Switch is in talks to raise billions of dollars at a valuation of at least $50 billion, with Brookfield Asset Management, KKR, and other private equity investors in discussions to participate. Goldman Sachs and JPMorgan are advising Switch on the fundraise, which could set up an initial public offering as early as next year. Switch was acquired by DigitalBridge and IFM in 2022 for $11 billion. YourDailyAnalysis sizes up the $50 billion figure against Switch’s own capital markets track record: the company has raised approximately $4.2 billion through five ABS securitizations since 2024, indicating the scale of its debt-funded growth.
Switch operates Prime data center campuses in Las Vegas, Reno, Austin, Grand Rapids, and Atlanta. The company’s April 2026 ABS issuance raised $768 million, adding a Reno facility of approximately 1.4 million square feet and 52 megawatts of capacity. Switch has borrowed more than $20 billion since 2024 and recently filed to expand further in both Austin and Atlanta. Founded by billionaire Rob Roy, the company touts its proprietary designs, patent portfolio, and energy-efficient campuses as structural advantages.
The equity fundraise sits alongside an IPO preparation process that has been in motion for several months. SoftBank’s Masayoshi Son pursued a full acquisition of Switch at a comparable valuation earlier this year before stepping back in January. The company’s backers have targeted an IPO valuation as high as $60 billion including debt. The reporters at YourDailyAnalysis track the parallel equity round and IPO track as two paths serving the same purpose: giving existing backers a defined exit at a premium reflecting the AI buildout’s impact on data center valuations.
AI infrastructure demand has made data center capacity the most sought-after physical asset in the technology supply chain, with U.S. hyperscalers spending north of $650 billion on AI infrastructure this year. Switch’s campuses position it specifically in the large-scale enterprise and AI workload segment. The company argues its closed-loop cooling systems and custom power infrastructure deliver a structural efficiency advantage.
Brookfield and KKR are infrastructure managers with long-dated capital mandates and experience buying assets where contracted revenue generates predictable returns against a large debt stack. A data center operator with $20 billion in borrowings, an ABS securitization program, and long-term customer contracts looks more like a utility than a technology company. YourDailyAnalysis interprets the Brookfield-KKR participation as a signal that data center infrastructure has crossed from technology to infrastructure asset class in institutional investor terms.
If the equity round closes at $50 billion, Switch’s existing backers capture a clear return on the 2022 acquisition. The IPO would allow full public market pricing with a broader investor base. Goldman Sachs and JPMorgan are named in the private round and have been mentioned in connection with previous IPO discussions.
At $50 billion, Switch trades at a multiple that assumes sustained hyperscaler buildout through at least 2028. Any material deceleration in AI infrastructure spending by Amazon, Microsoft, Google, or Meta – collectively planning more than $300 billion in capital expenditure this year – would compress data center valuations faster than the sector has experienced in years. The analysts at YourDailyAnalysis weigh this as the valuation risk: the asset class is real, but the entry multiple prices in a lot of the future.
Switch’s Pittsburgh expansion adds geographic diversification. The 382-acre campus near Pittsburgh extends the company’s footprint into a sixth market. Switch has stated it is committed to funding its own power infrastructure without passing costs to consumers, a commitment that may become more important as community opposition to data center projects intensifies.
Whether Switch closes the $50 billion equity round or pivots directly to an IPO, the transaction will produce one of the clearest market data points of 2026 for private AI infrastructure valuation. The range between the $50 billion equity target and the reported $60 billion IPO ambition gives investors a spread to evaluate how public markets price data center assets against private infrastructure capital. Your Daily Analysis leaves the key question open: does the round close at $50 billion, or does Switch test whether public markets will pay the $60 billion number directly.
